B9 Beverages, the parent company of popular craft beer brand Bira 91, faces a looming threat of insolvency proceedings. Glass manufacturing giant Hindusthan National Glass and Industries Limited (HNGIL) has escalated its dispute with the brewer, demanding the immediate settlement of ₹11,19,12,728 in outstanding dues.
In a bold regulatory move, HNGIL bypassed standard corporate channels and wrote directly to Bira 91’s marquee global investors—including Peak XV Partners, BlackRock, Sofina SA, Kirin Holdings, Tiger Pacific Capital, Anicut Capital, and Sixth Sense Ventures—to enforce full disclosure and demand operational intervention.
The Root of the Dispute: 51 Lakh Uncollected Bottles
The operational friction between the two entities stems from three purchase orders placed by Bira 91 for customized glass bottles featuring its distinct branding specifications.
According to HNGIL’s board communication, the glassmaker manufactured 51.42 lakh customized bottles. However, Bira 91 repeatedly failed to lift the stock or settle the outstanding dues, leaving the dead inventory languishing in warehouses for over a year.
- The Financial Tally: While Bira 91 had provided bank guarantees, HNGIL noted that even after encashing guarantees worth ₹3.91 crore, a massive deficit remains.
- The Final Demand: The total claim of ₹11.19 crore consolidates the base manufacturing costs along with accrued interest, mold costs, and mounting warehouse storage fees.
“The continued and unjustified blockage of inventory, warehousing infrastructure, and working capital consequent upon BIRA’s default imposes a material, disproportionate, and unsustainable financial burden on HNGIL,” the glass manufacturer stated in its notice, warning of civil and criminal Insolvency and Bankruptcy Code (IBC) actions if the dues aren’t cleared within 15 days.
Bira 91’s Response: “Undergoing Recapitalization”
Responding to the initial legal notice, Bira 91 founder and CEO Ankur Jain acknowledged the payment constraints in an email to HNGIL. Jain indicated that the startup is “undergoing a recapitalization process” that is expected to close by the end of the current financial quarter, requesting additional time from its vendors to smooth out the cash flow.
The timing is highly ironic for HNGIL, which itself recently successfully emerged from a multi-year, prolonged Corporate Insolvency Resolution Process (CIRP) under a consortium led by the Uganda-based Madhvani Group.
A Broader Financial Storm at B9 Beverages
The HNGIL dispute is not an isolated event; it underscores severe, systemic cash-flow distress building within the once-celebrated craft beer pioneer.
Bira 91 has been navigating a catastrophic operational year stemming from severe structural flaws, including a critical legal-name paperwork mistake that temporarily invalidated its distribution permits across 27 states, stranding ₹80 crore of inventory.
The Financial Health of B9 Beverages
A glance at the company’s audited metrics reveals why vendor payments have hit a standstill:
| Financial Metric | FY23 Performance | FY24 / Recent Audits | Status Impact |
| Annual Net Loss | ₹391.83 crore | ₹644.97 crore (Scaled to ₹749 Cr post-adjustments) | Fully Eroded Net Worth |
| Accumulated Losses | ₹1,473.01 crore | ₹2,117.98 crore | Flagged by Auditor Walker Chandiok & Co |
| Operational Cash Flow | Negative ₹241.37 crore | Negative ₹42.26 crore | Severe working capital freeze |
| Staff/Salary Arrears | Normal | Delayed up to 6 months | Prompted protests outside CEO residence |
The pressure has forced internal employee unions to file representations with government departments over unpaid salaries, missing provident fund (PF) deposits, and unremitted TDS worth ₹50 crore. While Bira 91 attempts to orchestrate a non-core asset sale to inject immediate liquidity and appease its lenders, the threat of an official IBC filing by a major supplier like HNGIL could completely derail its timeline for an IPO.